Median Price of a Home in California Increases 22 Percent in March (HO-LEE!)

PRNewswire ^ | 4/27/2004 | PRNewswire

[Rutles4Ever]

LOS ANGELES, April 27 /PRNewswire/ -- The median price of an existing home in California in March increased 22 percent and sales increased 4 percent compared to the same period a year ago, the California Association of REALTORS(R) (C.A.R.) reported today.

"The median price of a home continued its run of double-digit price increases last month as buyers scrambled to purchase homes amid concerns of rising mortgage interest rates," said C.A.R. President Ann Pettijohn. "This unprecedented demand helped push the median price of a home in many regions in the state to record highs in March. And at $428,280, the median price for the state also hit a record high in March compared to $351,130 just one year ago."

The median price of a home in the Central Valley, High Desert, Monterey, Monterey County, Northern California, Northern Wine, Orange County, Riverside/San Bernardino, Sacramento, San Diego, Santa Clara, Santa Cruz, North Santa Barbara County and Santa Barbara South Coast regions posted record highs in March, according to C.A.R.

Closed escrow sales of existing, single-family detached homes in California totaled 590,220 in March at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR(R) associations statewide. Statewide home resale activity increased 4 percent from the 567,610 sales pace recorded in March 2003.

The statewide sales figure represents what the total number of homes sold during 2004 would be if sales maintained the March pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

The median price of an existing, single-family detached home in California during March 2004 was $428,280, a 22 percent increase over the revised $351,130 median for March 2003, C.A.R. reported. The March 2004 median price increased 8.4 percent compared to a revised $395,060 median price in February.

"Year-to-date sales are up 4.4 percent compared to the same period last year," said Leslie Appleton-Young, C.A.R.'s vice president and chief economist. "Along with the median price of a home, the inventory of homes for sale reached an all-time historic low of 1.6 months in March, while time on the market stood at a record low of 26 days."

[2banana]

Can anyone say bubble?

[CyberAnt]

The real reason: the enviro whackos have protected all the areas where housing needs to be built. There is a lack of housing and that drives up the price.

[Mears]

The median home price in the city where I live in Massachusetts is $650,000.00.

I thought the bubble would burst in 2001,but it never did.

Unvelievable,isn't it?

[Dems_R_Losers]

Same thing is happening in the Washington, DC area. I need a bigger house but can't afford one in my neighborhood. They are going for $800,000 and up. The house across the street from me just sold for $820k and the guy is having work done on the place!

These are not bubbles. Job growth is strong in the DC area and in many areas of California. In Cali, you have all the legal and illegal immigrants also pushing the limited housing supply. There is a housing shortage in these areas. Listings are few and buyers are many.

[Always Right]

Can anyone say bubble?

I can say bubble, but I wouldn't count on a housing bubble. Housing is a neccessity. Unless the California economy tanks or people start moving out for whatever reason, I would not expect a major fallback in prices.

[LexBaird]

Government regulations, fees, taxes, licenses, EPA impact studies, etc. on average add over $50,000 to the price of a new home construction before the ground is broken.

[KC_for_Freedom]

I can say bubble, but I wouldn't count on a housing bubble. Housing is a neccessity. Unless the California economy tanks or people start moving out for whatever reason, I would not expect a major fallback in prices.

Yes, jobs is the thing that California seems to have. And the fear of interest rate hikes down the road are driving buying now.

[KellyAdmirer]

Bubbles can last a long time. A friend of mine in the real estate business liked to say that housing cycles tend to last seven years, "like in the Bible." ;)

[Sub-Driver]

Headline: Bush to blame for high housing costs, women and children hurt

[Rutles4Ever]

When does this start driving inflation? It would seem to me that in order to sustain this massive jump in the cost of living employers will have to start forking over more and more dough. Meanwhile, everyone making money hand over fist is simply moving up. Either the economy, or the real estate market is going to implode.

[angcat]

I was looking at houses in Cape Cod (keep dreaming) a one bedroom cottage is 250,000.

[cmsgop]

My friend in Costa Mesa bought a starter home for $250,000 five years ago, 1600sqf, no big deal. It is now on the market for $540,000 and he will get it.

[Mears]

Did you ever think you'd see the day when a house for $1,000,000.00 would seem almost routine?

[Mears]

The $250,000.00 house probably was very damp and poorly insulated too.

[onyx]

It's a seller's market now.
After the election,
watch out.

[CyberAnt]

Yes, that's true. But there are thousands of acres which could be developed which has been denied housing because of some teeny tiny butterfly. This is ridiculous. Why don't they capture a bunch of the butterflies and take them over to the San Diego Zoo ..?? There .. the butterflies could be viewed and enjoyed by the public .. without stopping the development of housing.

[mewzilla]

Caveat emptor.

[Choose Ye This Day]

Why would anyone want to spend nearly half a million to buy a home in California?

[Eric in the Ozarks]

The value of our home in a Twin Cities suburb increased 15-20 percent a year every year. It was a no-brainer.

[mcg1969]

THE HEADLINE IS INCORRECT. If you read the numbers, median home prices went up 8.4%, and are now 22% higher than March of LAST YEAR.

I'd say a headline change is in order.

[angcat]

Yes they are the summer cottages that we went for a week!

[nutmeg]

.

[mcg1969]

There's a lot to like about California actually. If we could only kick the liberals out it'd be worth twice that much.

[glorgau]

The pop is going to be ugly. It took almost 7 years for prices in Sacramento to recover from the early 90s blowout.

[Choose Ye This Day]

Been there. Done that. Glad to be back in the heartland. Thanks, but no thanks.

[RKV]

Amen. This was Reagan Country once. It can be again.

[Wheee The People]

Why would anyone want to spend nearly half a million to buy a home in California?

'cause it will double in value in 5-8 years?

[Phinanceguy]

Listen, I bought my house in Burbank 14 years ago for about 175 thousand. Today, I could get about $500 K. It at least helps me to make up for wht I lost in the stock market:)

[clamper1797]

I've just recently placed my home on the market ... I'm asking 1,250,000 negotiable ... here's a picture for those who may be interested ...

[Weimdog]

If it had an ocean view you'd probably get it.

But seriously, I have no idea how people afford houses here. I bought 7 years ago, 1200 sq ft California Craftsman bungalow in North Orange County (Fullerton) for $190K, I've had offers for $500K. I can't sell because to move up in the market I'd have to spend $750K, so any move on my part would have to be lateral, which makes no sense.

[quant5]

I would not say "bubble" but rather a "market correction". People are buying homes not because simply because of outlandish income, but easy credit and low interest rates.

The Feds have slightly raised and will raise rates again in 3rd quarter. Evereone with half a brain in the investment community knows this. When rates go up, people will not be qualified at current income ratios to purchase these overvalued homes, then the prices will start coming down. It is basic market economics.

Most areas of the country literally doubled or tripled home value in less than four years but it was long overdue. I could get into financials, but would say expect a market correction of 15% of existing home prices by the end of this year in most of the US. Coincidentally, the UK, Australia and other European countries are in the same shape. It was a smart federal policy move to keep our economy from a depression.

[SF Republican]

Why would anyone want to spend nearly half a million to buy a home in California? because they increase in value (over the last 30 years) at 9% per year, that is a cool $4000 a month in equity.

[quant5]

MANY, MANY Chuckles, thanks for making my day...

[LexBaird]

But there are thousands of acres which could be developed which has been denied housing because of some teeny tiny butterfly.

Oh, I agree. The ESA isn't about protecting endangered species, it's about getting around the immanent domain laws that require govt. seized land to be paid for. Much easier to just search for some kangaroo rat sub-subspecies on your land, then tell you that you can't use your property.

I think if I were being screwed over in favor of an insect, there might be an "accidental" cropdusting of the "wrong" field.

[The Bandit]

The real reason: the enviro whackos have protected all the areas where housing needs to be built. There is a lack of housing and that drives up the price.

I disagree. The real reason is just uncontrolled population growth. California has no need or purpose for 25 or 45 million people. Build all the houses you want and you are just mutiplying many different problems.

[mcg1969]

Suit yourself, my friend, that just means more room for me :-) Though I will admit to be considering a move to Texas, to be back with family.

[Smogger]

Why would anyone want to spend nearly half a million to buy a home in California?

Because we have the best weather in the country, beaches, mountains, and more importantly plenty of jobs. Now that our illegal population has reached the saturation point and are moving onto middle America things are looking up. ;-)

[Choose Ye This Day]

Or it means more room for our compadres from south of the frontera.

[Choose Ye This Day]

Beaches, weather, jobs. Fine.

But HALF A MILLION DOLLARS!!!???!!! That's nuts!

Not to mention traffic, some smog, crime, traffic, illegals glutting the system, traffic...

Did I mention traffic?

[Mears]

You bet it makes up for the stock losses,and the capital gains deal is great.

$500,000.00 tax free profit for a couple ain't bad!!!!

[wtc911]

If that house were on a 1/4 acre across from the beach in La Jolla it would go for that price in a weekend.

[chris1]

What the heck is a first time homebuyer to do??????????

[Mears]

My son and his wife,both with decent,but not high paying jobs,cannot get into the housing market on Long Island in New York.

Every time they save a little more the housing prices go up a lot more,and the fact that they are living in the suburbs of NYC doesn't help.One of the highest priced housing markets in the country.

It's tough for first time home buyers.

[Smogger]

What the heck is a first time homebuyer to do??????????

First time homebuyers are just screwed.

Personally I don't see how people do it. I bought a house in Ontario, CA three years ago for $177,000. Now smaller houses in the neighborhood sell for $350K and up. I am just glad I bought when I did. I guess people are just rich. Seriously though. People have to get married just to afford a home. Face it. If you have a 2K and up a month mortgage you are one paycheck away from bankruptcy.

[PRND21]

Bravo. Pretty good for a third world cesspool in the midst of a titanic invasion.
The sky isn't falling.

[CyberAnt]

Well .. I live in San Diego, and you don't know what you're talking about.

Soooo .. I guess you're right .. we disagree!

[Beelzebubba]

Wait until rates go up by a couple percent, and all those ARMs come home to roost. Foreclosures, and a drop in prices to where they were 5 years ago.

[RedWhiteBlue]

In 1992, I bought a new condo in Tustin Ranch (Orange County) for 174,000. Kinda like your friend's home -- a little over 1500 square feet. Small if you ask me, but I was living alone at the time so it was OK, even though I had to give up one of the bedrooms to have a home office. (The company I worked for at the time had no offices in the area and had sales reps working out of their homes). I left there in 1994, when housing was depressed and I was lucky to get what I paid for it. The other day I heard about the huge increase in prices there, and went to Realtor.com to check it out. I found a condo in the same development, same size, 2 car garage, etc. Except the 1500 square feet was divided up into rooms a little differently inside, but essentially the same condo. $519,000. That's just silly. I can't imagine paying that much for so little space, but obviously people are doing it!